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BRICS Bank and Saudi Arabia have forged an alliance amid global currency shifts, as Bitcoin takes the spotlight. The BRICS nations, which comprise Brazil, Russia, India, China, and South Africa, are planning to discuss the feasibility of introducing a common currency at their upcoming leaders’ summit.
The new BRICS currency could lead to a gradual shift in global currency reserves away from the U.S. dollar. Saudi Arabia is reportedly in advanced talks to join the BRICS bank, which could be a game changer for the petrodollar.
However, some believe that a BRICS currency poses little to no threat to the USD.
Meanwhile, Bitcoin is gaining attention as an alternative to traditional currencies, and some predict that the emergence of BRICS as an alternative to the U.S. dollar’s global dominance will usher in worldwide Bitcoin adoption.
What is the BRICS bank and what is its purpose
The BRICS bank, also known as the New Development Bank (NDB), is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China, and South Africa).
The bank was proposed by India at the 4th BRICS summit in 2012 held in Delhi, and the creation of a new development bank was the main theme of the meeting.
BRICS leaders agreed to set up a Development bank at the 5th BRICS summit held in Durban, South Africa, on March 27, 2013. On July 15, 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank, which makes provisions for the legal basis of the bank.
The bank’s purpose is to support public or private projects through loans, guarantees, equity participation, and other financial instruments. The bank’s future lending program will be modeled after the World Bank’s tactics in its early days, with a focus on “brick-and-mortar” projects such as basic infrastructure.
The current status of the BRICS bank’s lending program
The current status of the BRICS bank’s lending program is not explicitly mentioned in the search results. However, according to a Reuters article from 2015, the bank planned to issue its first loans in April of that year.
Another source from the Committee for Economic Development of The Conference Board states that the bank’s future lending program will be modeled after the World Bank’s tactics in its early days, with a focus on “brick-and-mortar” projects such as basic infrastructure.
It is worth noting that the bank’s initial focus was on lending to the BRICS nations themselves, but as other countries join the institution, they will be eligible for assistance.